Litecoin has formed higher lows and higher highs, moving inside an ascending trend channel on its 1-hour chart. Price just bounced off the resistance and is due for a pullback, possibly until the bottom of the channel around $130.
Applying the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with the channel support. This also coincides with an area of interest or a former resistance that might hold as support moving forward.
Price is currently testing support at the mid-channel area of interest near the 38.2% to 50% Fibonacci retracement levels, which might already be enough to keep losses in check. If so, litecoin could resume its climb to the swing high at $140.679 or to the channel resistance closer to $142.500.
The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is more likely to resume than to reverse. The bottom of the channel is also near the 100 SMA dynamic inflection point, which adds to its strength as a floor. A break below support could still bounce off the 200 SMA dynamic support around $125 as the line in the sand for the climb.
Stochastic is moving up to show that buyers have the upper hand, so litecoin could follow suit. RSI, on the other hand, is still heading south so the correction could on for a bit longer until this oscillator hits oversold levels and turns back up.
Sentiment in the cryptocurrency has been mostly positive recently, owing to the prospect of higher liquidity in the industry and the recent acquisition of Earn.com by Coinbase. However, the dollar is putting up a pretty decent fight on account of upbeat economic data and easing geopolitical risks.
Litecoin just got listed on Korbit, which is the biggest bitcoin and ethereum exchange in South Korea, leading to a brief spike in its value.